Christopher G. Hill | Construction Law Musings I have written a couple of times here at Musings regarding the new pay-if-paid legislation passed by the General Assembly last session. While the statute has some inconsistencies and a working group has made some recommendations, the legislation as passed will go into effect on January 1, 2023, without any changes (at least… Continue reading PSA: Pay If Paid Ban Goes into Effect on January 1, 2023
Tag: Pay-if-Paid Clause
Subcontract Payment Provisions Mean Exactly What They Say in Connecticut
Bill Wilson | Construction Law Zone The recent Connecticut Appellate Court decision in Electrical Contractors, Inc. v. 50 Morgan Hospitality Group, LLC, 211 Conn. App. 724 (2022), eliminated any remaining doubt regarding a subcontractor’s right to payment for work performed when the subcontract includes a “pay-if-paid” provision. A pay-if- paid provision that makes an owner’s payment… Continue reading Subcontract Payment Provisions Mean Exactly What They Say in Connecticut
Not If, But When: Newly Enacted Virginia Legislation Bans “Pay-If-Paid” Clauses In Construction Contracts
Joseph A. Figueroa and Thomas E. Minnis | ConsensusDocs Recently passed legislation in Virginia is likely to dramatically change contractual relationships between prime contractors and subcontractors in the Commonwealth. Abrogating well-established common-law principles set forth by the Supreme Court of Virginia, on April 27, 2022, the Virginia General Assembly, after receiving input from Virginia Governor… Continue reading Not If, But When: Newly Enacted Virginia Legislation Bans “Pay-If-Paid” Clauses In Construction Contracts
Final Thoughts on New Pay If Paid Legislation in VA
Christopher G. Hill | Construction Law Musings This past General Assembly session, and after a governor’s amendment and with the convening of a study group, a new statute banning so-called “pay-if-paid” clauses from enforcement was passed. Some of the key features of the legislation are as follows: It does not take effect until January 1, 2023, and,… Continue reading Final Thoughts on New Pay If Paid Legislation in VA
Even Federal Contractors and Subcontractors Should Pay Heed to State Law on Conditional Payment Clauses
Dismas Locaria and Caleb McCallum | Venable The Virginia legislature recently took a broad step toward limiting the use of certain common clauses in construction subcontracts. This new legislation, effective January 1, 2023, amends the state’s Prompt Payment Act (Va. Code § 2.2-4354) and wage theft statute (Va. Code § 11-4.6) to effectively prohibit the… Continue reading Even Federal Contractors and Subcontractors Should Pay Heed to State Law on Conditional Payment Clauses